Indusind Bank Limited Vs State of Gujarat & Ors (Gujarat High Court)
Date: June 19, 2025
Subject Matter
Section 75(10) CGST Act Under Scrutiny: Indusind Bank Challenges Time-Barred SCN
Summary
The Gujarat High Court is examining a challenge by Indusind Bank Limited against a Show Cause Notice (SCN) issued by tax authorities, which the bank claims is invalid due to being issued beyond the statutory time limit defined under Section 75(10) of the CGST Act. The bank asserts that the SCN, dated November 30, 2024, pertains to the assessment period 2020-21, and was issued past the permissible period as per the law; specifically, it argues that the notice should have been issued by November 28, 2024, based on the due date for the annual return of February 28, 2022. Indusind Bank supported its position with precedents from other high court rulings, including those from the Andhra Pradesh High Court and Telangana High Court, which ruled in favor of quashing notices issued after the mandatory deadline. The bank also referenced a Supreme Court decision which clarifies the interpretation of “three months” versus “90 days” in relation to legal timelines. The Gujarat High Court has acknowledged the bank's arguments and issued a notice with a return date set for July 17, 2025, for further proceedings. The outcome of this case could potentially clarify the requirements for issuing tax recovery notices under the CGST Act, with a focus on adherence to legal timeframes.
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
Heard learned advocate Mr. Prasad Pranjape for learned advocate Mr. Dhaval Shah for the petitioner and learned Senior Standing Counsel Mr. Utkarsh Sharma for the respondent appearing on advance copy.
2. It was submitted by learned advocate Mr. Prasad Paranjape for the petitioner that the respondent authority has issued the show cause notice in violation of the provisions of Section 75(10) of the Central Goods and Services Tax Act, 2017 (for short “the CGST Act”). In support of this, it was pointed out that the last date of furnishing the annual return as per Rule 80 of the CGST Rules in case of petitioner for the period 2020-21 was 28.02.2022 and therefore the due date of issuance of order is three years and as per provisions of Section 75(10) of the CGST Act due date of issuance of notice would be 28.11.2024, whereas in the facts of the case, the show cause notice had been issued on 30.11.2024.
2.1. It was submitted that in the identical facts the Hon’ble Andhra Pradesh High Court in the case of M/s. The Cotton Corporation of India v. Assistant Commissioner (ST) (AUDIT) (FAC), State of Andhra Pradesh, Union of India reported in 2025 (2) TMI 362 has quashed and set aside the order in original as the show cause notice was beyond the prescribed mandatory period of three months issued on 30.11.2024 instead of 28.11.2024.
2.2. Reliance was also placed on the decision of the Hon’ble Telangana High Court in the case of M/s. Sri Durga Bhavani Enterprises v. Assistant Commissioner State Tax reported in 2025 (4) TMI 1148 wherein, the aforesaid decision of the Hon’ble Andhra Pradesh High Court is followed. Learned advocate for the petitioner also referred to and relied upon the decision of the Hon’ble Apex Court in case of State of Himachal Pradesh & Anr., v. Himachal Techno Engineers & Anr., reported in (2010) 12 SCC 210 wherein it is held by the Honb’ble Apex Court that when the period prescribed is three months as contrasted from 90 days from a specified date the said period would expire in the third month on the date corresponding to the date on which the period starts. It was, therefore, submitted that in the facts of the case, three months would be over on 28.11.2024 and therefore, the show cause notice dated 30.11.2024 would be without jurisdiction and as a consequence thereof, the impugned order in original would be without jurisdiction.
Considering the above submissions, issue Notice returnable on 17.07.2025.
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